Securities and Exchange Board of India (Sebi) has asked stock brokers/clearing members to carry out complete internal audit on a half yearly basis by independent qualified chartered accountants.
The scope of the audit will cover the existence, scope and efficiency of the internal control system, compliance with the provisions of the Sebi Act, 1992, Securities Contracts (Regulation) Act, 1956, Sebi (Stock brokers and sub brokers) Regulations, 1992, circulars issued by Sebi, agreements, KYC requirements, bye laws of the exchanges, data security and insurance in respect of the operations of stock brokers/ clearing members.
The first such audit period should be between October 1, 2008 to March 31, 2009.
